JPMORGAN: We've had problems like Wells Fargo — but they're not 'systemic'

JPMorgan has encountered some of the cross-selling issues that
have recently plagued Wells Fargo — but it's nothing "systemic."

That's according to chief financial officer Marianne Lake, who
said on a call following third-quarter earnings that JPMorgan is
conducting a deep-dive investigation following the news about its
competitor.

"We have over 50,000 people working in over 5,000 branches — it's
obviously the case that we will occasionally find issues, both
issues of this nature and of other natures," Lake said. "The
important thing is that we are focused on finding them, finding
them timely, and fixing them."

Asked whether there had been at least a couple of
cross-selling incidents, Lake responded yes.

"We can't have zero defects; the point is that we are not
building our incentives to get those behaviors," she said. "We're
paying for deep relationships — if we find someone who's abusing
our code of conduct for this or any other reason, we will take
action."

She said JPMorgan reviews its incentive compensation plans
for branches annually and has a complaints management
process. Additionally, she said, the firm is
taking an "inward deep-dive" given the news, and has not yet
found any "systemic" issues.

"We're not seeing anything that rises to the level that we would
be concerned," Lake said.